Nobody wants to foreclose on their home, especially if you’ve spent most of your life creating memories there. However, medical bills, loss of income, and unexpected expenses in retirement can cause foreclosure to become a reality. Here are a few tips to help you deal with looming foreclosure in retirement.
Take a Part-Time Job
First, you can take a part-time job to help supplement your income which has been fixed and limited up to this point. Make sure that you’re taking a part-time job that you can easily manage with the state of your health. You might not want to take a job that is going to involve a lot of manual labor, heavy lifting, or long hours of standing and walking.
Wearing yourself out physically can only make your situation more difficult. Instead, try to find a part-time job that will be easily manageable with your physical and mental health. This can help you to have the additional income that you need to save your house from foreclosure.
Sell and Downsize
Next, consider selling and downsizing your home to avoid foreclosure. Even though you likely are very emotionally attached to your home and don’t want to lose all the memories you’ve created there, there comes a point where it is impossible to afford and take care of.
Even if you can afford your mortgage payments, home maintenance expenses might start becoming unmanageable. Selling and downsizing your home can help you to afford a comfortable living space that doesn’t eat up all of your retirement savings. Selling your home is often a sure solution to foreclosure.
Rent Your Home
If you really don’t want to lose your home, consider renting parts of your home to supplement your income. For example, you could rent your basement as a living space for a small family. You could rent bedrooms to grandchildren, family members, or friends. You could even rent your entire house as a vacation space when you’re away from home. Renting your home and gaining some additional income could help you to avoid foreclosure. However, you will have to make sure that you have consistent tenants, and you’ll want to screen them to make sure that they’ll take care of your home. If you don’t want to rent out your own space, you could downsize and move into a smaller, more manageable rental yourself.
So, if you’ve been stressed about the potential foreclosure that has been looming over you in retirement, remember these approaches you can take. You can take a part-time job, sell and downsize, or rent your home to make your home more affordable. Remember, even though you love your home, it isn’t worth it to drain all of your retirement savings on a home that you can’t manage.
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